Newsun Focus Faces A $183 Patent Cliff, Amgen, BMS, And Merck Under Pressure

According to Morgan Stanley's latest report, released on July 11, analysts predict that by 2030, the world's large pharmaceutical enterprises will face with annual sales of about $183.5 billion loss. This unprecedented "patent cliff" is expected to have a huge impact on the industry, especially for companies such as Amgen, Bristol-Myers Squibb (BMS) and Merck Sharp & Dohme, which face the most serious revenue risk.

However, in The Times of challenge and opportunity coexist, the pharmaceutical giants are not helpless. Despite their blockbuster drugs will inevitably lose patent protection, but the company has strong financial strength, provides them with enough buffer space. They are through mergers and acquisitions, actively complement their product line, in order to stay competitive in the fierce market competition.

In the case of Amgen, four of its biggest products -- Prolia, Xgeva, Enbrel, and Otezla -- are all facing patent expiration in the next few years, and these products currently account for 67% of the company's revenue. Still, Amgen has put itself on a solid footing for the future by successfully introducing new products, including Tepezza for thyroid eye disease, through an acquisition worth $27.8 billion.

Similarly, BMS is facing 63% of its revenue impacted by patent expirations, and its flagship products Eliquis and Opdivo are also set to lose patent protection in the coming years. However, BMS is not sitting on its hands, but has strengthened its product pipeline by acquiring companies such as Karuna, Mirati and RayzeBio.

The patent cliff has undoubtedly put tremendous pressure on the entire industry, but it has also forced these big pharma companies to accelerate the pace of innovation. They are actively filling the market gap created by the expiration of patents through mergers and acquisitions. In the future, the better able to cope with the patent cliff, will stand out in the industry reshuffle, become the winner of the market.